Document Type : Original Article
Authors
1 Department of Health Management and Economics, School of Public Health, Tehran University of Medical Sciences, Tehran, Iran
2 Department of Biostatistics and Epidemiology, School of Public Health, Shahid Sadoughi University of Medical Sciences, Yazd, Iran
Abstract
INTRODUCTION: A sharp increase in expenditure is one of the challenges of the health system
in Iran. Every macroeconomic variable affects health, and if it is disregarded, it will lead to higher
macrobudgets. Physical and mental health as well as the use of health services change according
to the macroeconomic conditions and business cycles (boom and recession). The present study
aimed to determine the effect of macroeconomic indicators on health expenditure.
METHODS: This study was descriptive analytical. The required data related to macroeconomic
indicators and health expenditure in public and private sectors were collected during 1995–2014.
The data were analyzed using the time series models in econometrics, Vector Auto Regression,
and Granger causality technique.
RESULTS: The results of this study indicated that health expenditure has a positive bilateral
relationship with gross domestic production (GDP), gross national production, national income,
and national consumption. On the contrary, expenditure has a negative bilateral relationship with
liquidity rate and inflation rate. In addition, budget deficit has a negative unilateral relationship with
health expenditure while population rate has a positive unilateral relationship with health expenditure.
CONCLUSION: The results of this study indicated the increase of health expenditure in Iran that
GDP is the most critical determining factor of health expenditure. In general, the total expenditure in
the health sector in the world increases when the countries become richer. In line with the increase
of resources, innovative financing methods and efficiency improvement are required for providing
basic health services in low‑income countries.
Keywords
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